Cardano: An innovation boost for the cryptocurrency industry?

  • Cryptocurrency News
Cardano: An innovation boost for the cryptocurrency industry? - Cardano recently integrated its smart contract function into the main net through the implementation of the Alonzo hard fork. However, this did not provide the price of native ADA cryptocurrency with a lasting tailwind. On the contrary, it has lost more than 17% of its value since the integration of smart contracts. Most recently, Cardano's price stood at $ 2.17, about $ 0.90 below the record high in early September.

In addition to the recent turmoil in international financial markets, which has led to a decline in investor risk appetite, another fact has also created uncertainty among Cardano investors: although more than 4,000 smart contacts have already created, more than 99% of them are still in a time lock, i.e. blocked. This is what the data from the Vercel application reveals.

Cardano Boosts Cryptocurrency Innovation

The Coin Bureau presenter nevertheless believes that Cardano and its technology may spark a new wave of innovation in crypto, much like what happened with Ethereum six years ago.

Cardano offers huge opportunities with the many decentralized applications (DApps) that will be launched on the mainnet, he judges.

"We are poised to witness a new explosion of innovation in cryptocurrency, unlike anything we have seen since the launch of Ethereum in 2015, and it is the early adopters who are using it. will benefit the most. "

According to Coin Bureau, one of the reasons users and developers are drawn to Cardano is its unique staking system, which it believes makes it one of the most decentralized cryptocurrencies in the entire market.

"The rewards for staking decrease as soon as there are too many Cardanos in a single pool. This promotes decentralization ..."

Staking is a method of obtaining returns on cryptocurrencies. By "storing" your cryptos, you can earn passive income.

“The reward for ADA staking is currently around 4.5% per year. Since the coins aren't locked, it's easy to deploy tokens and make them work for you. This is also the reason why nearly 70% of ADA's supply is currently staked. This makes Cardano the most valuable blockchain in terms of active staking."

At the same time, Coin Bureau is issuing a warning to all those who have fallen for the hype around Cardano.

“Cardano has over 1.6 million users and its community is arguably the most active in the entire crypto space. It's amazing, but at the same time it's a developers' worst nightmare, because they know very well that there is no way for their DApps to handle this kind of traffic ..."

As a result of this awareness, almost all Cardano projects are delaying their launch in order to put their infrastructure to a real stress test, "because if they were to deploy their DApps now, they would end up on the streets," Coin Bureau said.

Inflows into Cardano investment products are slowing

Institutional investors have slowed down after the record-breaking Cardano scramble, according to the weekly investment product inflow and outflow report from ETP provider CoinShares.

According to the data, $ 1.9 million was poured into Cardano investment products during the week of September 17, up from $ 3.5 million the week before.

Cardano - technical perspectives

Cardano's share price held up to an initial test of the support level at $ 2.03. However, the cryptocurrency has yet to recover sustainably. If this sustaining zone cannot stop the current corrective movement, selling pressure is likely to extend to the August 18 low at $ 1.87.

Some relevance can be attributed to this price point as it represents the breaking level of the major rally to an all-time high at the end of August. The area is further strengthened by the 100-day line at $ 1.81. A fall below this threshold paves the way for a 200-day smoothing test at $ 1.60. The 200-day line is viewed by investors as a guide to setting the limits on their buy and sell orders. If the price stabilizes in this zone, a new entry is possible.

For the chart trend to become positive again, a rise above the price level of $ 2.66 is required.

Note: This article does not constitute investment advice or a solicitation to buy or sell assets. The article also does not claim to predict the evolution of the price of Cardano. This is simply an afterthought commentary on the development of the ADA to keep Cardano investors informed of the latest cryptocurrency news and the starting technical position of the ADA / USD.

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